Union Finance Minister Nirmala Sitharaman, while responding to the debate on the Union Budget 2025-26 in Parliament this week, provided a clear picture of the Indian economy and ongoing reforms, Prime Minister Narendra Modi said on Saturday.
“During her remarks in Parliament, Finance Minister @nsitharaman has given a very clear picture of the Indian economy and the reform trajectory we are undertaking,” PM Modi said on social media platform X.
During the Budget debate in the Lok Sabha, Sitharaman asserted that India will remain the world’s fastest-growing economy, supported by increased government capital expenditure and rising rural consumption.
She noted that the effective capital expenditure in the 2025-26 Budget stands at 4.3 percent of GDP, while the fiscal deficit is projected at 4.4 percent. Addressing opposition claims, she clarified that the capex allocation has risen to ₹1.21 lakh crore, dismissing assertions of a budgetary cut.
Sitharaman emphasized that inflation management remains a top government priority, with overall retail inflation staying within the notified tolerance band of 2 percent to 6 percent.
Speaking in the Rajya Sabha, the finance minister highlighted the global challenges influencing the Budget, noting an increasingly fragmented world economy with rising tariff barriers despite long-standing globalization efforts.
“For decades, we have discussed globalization, but now we are witnessing growing fragmentation. Everyone wants free markets, yet tariff barriers are increasing. The world is undergoing significant change,” she said.
Sitharaman added that the unpredictable nature of global trends makes economic modeling difficult.
“Despite this, we have aimed for the most accurate assessments, prioritizing India’s interests. The prevailing uncertainty also affects critical imports essential for India’s economic growth,” she noted.
The Budget has not reduced sectoral allocations, with the effective capital expenditure for the next fiscal year estimated at ₹19.08 lakh crore, Sitharaman said.
Additionally, she introduced the new Income Tax Bill, 2025, in the Lok Sabha this week as part of tax reforms aimed at simplifying provisions and reducing legal disputes.
-IANS
